The Bitcoin value continues to shoot up and fall down despite markets not being fully aware of why it is happening. Behind a complex technology that is not so easy to see through and despite the complexity and the comparatively large effort, there are certain applications that can benefit from this innovation. That’s why there are now software development companies that have dedicated themselves to blockchain development.

Blockchain – What’s that?

The electronic currency Bitcoin is probably the best-known development child of Blockchain technology. Thanks to this innovation, it’s the first completely decentralized virtual currency that has no individuals or institutions such as banks or financial services. This unit is only distributed in a huge network and is not traceable. Consequently, the flow of virtual money can neither be controlled nor regulated by the state. The stability, speed and security of the transactions are ensured by the Blockchain. Matching the description, the transactions are grouped in blocks, which must first be verified. Because there is no higher authority to do this task, the network participants have to do it themselves.

This verification is commonly known as mining, constantly suggesting blocks that are compatible with past history stored on the network. The construction of such units and their verification are done according to cryptographic principles and are therefore so complex and hard to master. Due to the dependence of the individual unit on each other and their concatenation, it is almost impossible to attack the transaction from outside. That being said, it’s easy to conclude that this system is one of the safest of all.

For Which Sectors Does Blockchain Development Play a Role?

Blockchain development is still conquering software market as we speak. The first electronic currencies are results of this kind of development. Based on this innovation, various applications can be developed that democratize processes and ensure simple, fast and secure transactions. Of course, the financial industry is one of the main sectors, as Bitcoin has been the most influential part of the invention so far.

Almost all aspects of finance such as a distributed ledger, settlement, trading or custody can benefit from this technology. In the meantime, the automotive industry has also become a completely technologized, as smart electric cars will in future become mobile power storage systems that can negotiate with other participants for the exchange of electricity.

So-called smart contracts, i.e. arbitrary transactions such as proof of identity will also find their place in the insurance industry. They are also based on the principles of Blockchain and can spread risks across the network to provide appropriate conditions.

Bitcoin technology

Eventual Consistency & Transparency

Generating new blocks based on their predecessors ensures that all participants in the network have the same information after a certain amount of time. The length of this period depends on the particular implementation. From this point on, however, it can almost be guaranteed that no data is missing or has been transmitted incorrectly. In the case of public blockchains, each participant can, by means of certain services (Block Explorer), even gain access to the entire history related to the history of transactions for any Internet user. As a result, information about what is happening with this kind of technology is democratized and distributed fairly.

Applications of Blockchain

Basically, Blockchain is used wherever distributed data needs to be kept secure. However, in such cases, the benefits of using it over traditional methods such as distributed databases do not always predominate. The complexity of developing protocols and applications is still relatively high and understanding of the underlying principles is not widely available.

However, there are many examples of “natively distributed” applications that are particularly well suited for this invention. These include of course the obvious financial transaction applications such as currencies and trading platforms, but also insurance, Internet of Things (IoT), Distributed arithmetic or proof of identity can be mapped very well by the distribution and immutability of data.

Currently, almost every day, new projects are being created that take advantage of this technology. How many and which of them will work sustainably? The future holds the answer to such questions.[/vc_column_text][/vc_column][/vc_row]